As markets continue to display volatility, long-term investors can find cheap stocks. In particular, TSX telecom stocks are trading at attractive prices.
These stocks are generally associated with solid growth prospects and large yields. So, investors focused on the long run will find those to be positive characteristics.
Now, telecom stocks aren’t immune to the short-term economic climate. But they shouldn’t be as hard hit as other sectors, as the business isn’t really cyclical or frivolous.
Today, we’ll look at two telecom stocks That are trading at attractive levels. They currently present investors a chance to lock in large yields for the long run.
However, Telus doesn’t solely provide mobile phone solutions for customers. It also offers internet and TV services along with its ever-expanding Telus Health division that specializes in healthcare.
While its peers have been focused more on media and entertainment, Telus has invested a great deal in healthcare innovations. In today’s world, it’s fair to say that line of action stands to benefit Telus.
Plus, with 5G just around the corner for the Canadian market, Telus has some things to look forward to. Their knack for innovation and customer experience could give them an edge going forward.
As of writing, this telecom stock is trading at $23.42 and yielding 4.97%. So, long-term investors should be eager to scoop up Telus with nearly a 5% yield.
Telus has long been committed to growing its yield to provide investors with more value as the company grows. Although investors might not see substantial short-term growth, expect more down the line.
Shaw Communications (TSX:SJR.B)(NYSE:SJR) is another Canadian telecom stock providing internet, TV, and mobile services.
While not one of the major Canadian telecoms, it has been growing quickly. Its subsidiary, Freedom Mobile, has swiftly been picking up market share in the mobile market in Ontario.
Where Shaw lacks in proven stability and sheer size, it makes up for with its yield and growth prospects. Currently, this telecom stock is trading at $11.45 and yielding 7.02%.
As you can see, the reward is there for investors willing to go a little off the beaten path. Even though Telus’s yield of 5% is high, Shaw’s is even higher.
But, it’s worth noting of course that Telus’s revenue streams are more developed and robust than Shaw’s, and Telus is much larger.
Now, Shaw certainly has its work cut out for it. Catching up to the Big Three is no easy feat. However, it’s already shown promise out west and with the aforementioned Freedom Mobile brand in Ontario.
For investors willing to bet on this telecom stock’s growth, the reward is certainly there.
Telecom stock strategy
For long-term investors, telecom stocks are currently attractive investments. With prices driven low, yields are at high levels.
Plus, business isn’t dramatically altered by the current economic situation.
Between Telus and Shaw, you have two solid telecom stocks. Telus has more diverse offerings and a better track record. However, Shaw has shown growth recently and offers the larger yield.
Depending on an investor’s risk profile, either stock could be a great choice.
Thinking about other high-growth stocks? This might just be the one to watch...
One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting...
Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago - before it skyrocketed by 1,211%!
Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Jared Seguin has no position in any of the stocks mentioned.